- Tram Ho
Samsung has witnessed a strong push from chip sales in recent years, especially due to the need to build data centers in the world. However, its chip sales may not be enough to offset the decline in the smartphone business due to the impact of the Covid-19 pandemic.
Due to the impact of the Covid-19 pandemic, the need to work from home and direct learning was enormous.
This inadvertently created growth opportunities for Samsung’s chip segment. The Korean electronics company is currently the world’s largest supplier of DRAM and NAND memory chips. This is also the business segment that accounted for half of Samsung’s profits in the past time besides smartphones.
Analyst Park Sung-Soon from Cape Investment & Securities said that thanks to the increasing demand and the increase in DRAM prices helped Samsung maintain impressive sales in Q2 / 2020. The exact number has not been announced yet, but the chip business will make up for most of Samsung’s sales.
However, the growth trend of the memory chip segment is not necessarily sustainable, because when the need to build data centers is over, the memory chip price will gradually cool down. Not to mention the data from DRAMeXchange shows that, although DRAM price has increased by 14% in the last quarter but in general, there is not enough difference.
Finally, it must be confirmed that chip sales are difficult to compensate for the decline of the smartphone business that Samsung and many other companies are suffering.
Analyst firm Hyundai Motor Securities estimates that Samsung’s smartphone business profits fell by 16% in Q2. Analysts say that Samsung smartphone sales hit their lowest level in April and will take a long time to recover.
Kim Kyung-Min, an analyst at Hana Financial Investment, predicted that Samsung could sell 50-55 million units in Q2. Earlier, it sold 59 million units in Q1 / 2020.
Samsung is expected to release its Sales and Profit Forecast for Q2 / 2020 on Tuesday before releasing official figures at the end of July.
According to forecasts by analyst firm Refinitiv SmartEstimate, Samsung’s profit could only reach 5.25 billion USD, down 4.5% compared to the same period last year.
Refer to Gizmochina
Source : Genk